JACK Dividend Type Payments

JACK IN THE BOX dividend

Although JACK has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on JACK IN THE BOX to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 10:10 AM ET):

JACK IN THE BOX (JACK)
Bid Ask Last Change Volume P/E Market Cap
78.12 78.24 78.20 +0.28 79K 17 2.1B

JACK Dividend-Like Income Using Covered Calls

With JACK at 78.20, here's a table showing how big the annual "dividend" (ie. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield Annual Premium Cents/Day
3% 2.35 0.6
5% 3.91 1.1
10% 7.82 2.1

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:

3% Yield On JACK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 85.00 0.20 26 0.8 6.76 (8.6%)
Dec 21 90.00 0.50 61 0.8 11.76 (15.0%)
5% Yield On JACK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 80.00 1.50 26 5.8 1.76 (2.3%)
Dec 21 85.00 1.30 61 2.1 6.76 (8.6%)
10% Yield On JACK Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 80.00 1.50 26 5.8 1.76 (2.3%)
Dec 21 80.00 2.85 61 4.7 1.76 (2.3%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Nov 16 Expiration     Top 5 High Yield
1.SPY dividend 6.SPX dividend   1.UVXY dividend
2.EWZ dividend 7.VXX dividend   2.SNAP dividend
3.EEM dividend 8.FXI dividend   3.AMD dividend
4.PBR dividend 9.IWM dividend   4.TWTR dividend
5.QQQ dividend 10.BAC dividend   5.AKS dividend

Want more examples? IYZ Dividend | JAE Dividend